This week, CAPS Research published a study titled “Effective Global Sourcing and
Supply for Superior Results”. This study reports that total non-domestic (U.S.)
spend for purchased items will continue to rise dramatically, and that by year 2010
the total dollar amount of items purchased by U.S. companies from non-U.S. sources
will be between 41percent and 50 percent of total spend. The study’s authors also
found that the primary reasons for sourcing globally are cost-related. Participants
reported their global sourcing strategies have lead to an average cost reduction
of 19 percent. These same companies also reported a 12 percent reduction in total
cost of ownership.
Click on the following link to read about the eight factors that are positively
and statistically related to global sourcing performance outcomes, and how organizations
are further integrating global sourcing strategies across functions and locations
to achieve superior performance:
Effective Global Sourcing and Supply for Superior Results
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Earlier this month CAPS Research published the 2006 Cross Industry Benchmarking
Report that updates the information published in May 2006. The benchmarks were calculated
from data provided by 227 companies representing 20 industry sectors. If your company
did not participate in the survey process, contact the benchmarking team (benchmark@capsresearch.org)
to learn how you can get a report that will let you compare your company’s data
alongside industry averages. Two of the most popular benchmarks are ‘Purchase Operating
Expense per Purchase Employee’ and ‘Purchase Employees as a Percent of Company Employees’
(Benchmarks 4 and 5, respectively).
To access the metric report, click on the following link:
Cross-Industry Benchmarking Report November 2006
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With the continuing need to constrain costs and improve business results, many of
our benchmarking partners have consolidated all – or some – of their spend activities
into a center-led shared services centers. The benchmarking report titled “Measuring
the Organizational Effectiveness of Procurement Shared Services Centers” reports
that 62 percent of the companies participating in the survey said they currently
employ a procurement-related shared services center, and almost half of those companies
who said ‘no’ to this question expect to do so within the next two years. On average,
shared services centers are responsible for 42 percent of the total purchase spend,
and 82 percent of spend for non-production goods and services.
Click on the following link to view the report:
Measuring the Organizational Effectiveness of Procurement Shared Services Centers (PSSC)
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For more information about CAPS Research programs and products please contact us
at
Research@capsresearch.org.
Sincerely,
Phillip Carter, D.B.A.
Executive Director
CAPS Research
CAPS Research is a global research organization jointly sponsored by the W. P. Carey
School of Business at Arizona State University, and the Institute for Supply Management™.